Reserve Bank of India today auctioned 35-days Treasury Bills worth Rs. 60,000 Crores under the aegis of Market Stabilization Scheme as a step to clean the extra liquidity from the system. The bids were submitted via an electronic format on the Reserve Bank of India Core Banking Solution System known as E-Kuber. The generic character of Cash Management Bills is that of Treasury Bills. The banks witnessed a massive increase in deposits against the backdrop of demonetisation.
Market Stabilisation Scheme Bonds are usually issued with the aim of giving the Reserve Bank with a stock of securities to help it intervene in the market for liquidity management. These are not issued with the aim of meeting governmental expenditure.
In addition government has also made an announcement of selling of four dated securities for Rs. 14000 on December 09, 2016. All auctions will be held using multiple price method. All eligible individuals and institutions will get 5 percent of the amount of the sale of stocks as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.